Sirius and XM shareholders want merger
November 16, 2007
Shareholders of Sirius Satellite Radio and XM Satellite Radio voted to approve Sirius’ proposed $13.6 billion acquisition of XM.
The companies signed an agreement in February for a deal that has drawn close regulatory scrutiny. Terms call for Sirius to pay 4.6 shares for each XM share. Analysts say it may still be difficult for an XM-Sirius as it is seen as creating a monopoly, especially if their market is narrowly defined as the satellite radio industry. The companies say their market should not merely be defined as satellite radio, since they must compete against all of terrestrial radio, as well as Internet radio, audio from satellite and cable television systems, music download services and other media.